Spain Explores National Digital Currency Amid Global CBDC Momentum

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As digital transformation reshapes financial systems worldwide, Spain has stepped into the spotlight with plans to explore a national digital currency. While many countries accelerate their central bank digital currency (CBDC) initiatives, others like Switzerland remain cautious—studying the technology without committing to implementation. This growing divergence highlights the evolving global landscape of digital money.

Spain’s ruling party, the Spanish Socialist Workers' Party (PSOE), recently introduced a non-binding proposal advocating for the development of a sovereign digital currency. The move responds to the declining use of physical cash and aims to preserve public control over monetary systems in an era increasingly dominated by private payment platforms.

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Why Spain Is Pushing for a Digital Peseta

The proposal emphasizes that emerging payment trends risk "privatizing and endangering" money, shifting power away from public institutions and into the hands of fintech firms and private networks. To counter this, the PSOE argues for reinstating money as a public good—one that is stable, secure, and under democratic oversight.

A state-backed digital currency would be intangible, fully electronic, and guaranteed by government support. Unlike cryptocurrencies such as Bitcoin or Ethereum, it would not be decentralized. Instead, it would function as a digital form of legal tender issued directly by the central bank.

Carlos Conesa, head of financial innovation at Banco de España, confirmed recent momentum:

“The digital euro project is very likely to launch this month.”

This aligns with broader European Union efforts. The European Central Bank (ECB) is advancing its digital euro initiative, aiming to ensure that Europe retains control over its payment infrastructure in a rapidly digitizing world.

Spain has also strengthened its regulatory framework. Last week, the EU designated Banco de España and the National Securities Market Commission (CNMV) as the primary regulators for crypto assets within the country—a move signaling increased institutional readiness for digital finance.

How a Spanish CBDC Could Transform the Economy

One of the most compelling arguments for a national digital currency is its potential to enhance monetary policy effectiveness. According to the proposal:

“During monetary expansion, liquidity can be injected directly into commonly used accounts, transferring funds into economic activity without intermediaries.”

This direct transmission mechanism could allow policymakers to stimulate spending more efficiently during economic downturns—bypassing traditional banking channels that may delay or dilute policy impact.

For example, during a recession, the government could distribute stimulus payments instantly via digital wallets linked to citizens’ identities. These funds could even be programmed with time limits or usage conditions (e.g., only for groceries or rent), increasing fiscal precision.

Moreover, experts suggest that a CBDC could reduce reliance on commercial banks for basic monetary functions. Currently, only banks hold direct accounts with central banks. A retail CBDC would enable individuals and businesses to hold balances at the central bank level:

“Digital currency will end banks’ privilege over money. Everyone could have a direct account at the central bank—this is entirely feasible.”

This shift could increase financial inclusion, especially for unbanked populations, while reducing systemic risks tied to bank failures.

Switzerland’s Cautious Stance: Research Over Rollout

While Spain advances its digital currency agenda, Switzerland stands out for its measured approach. Despite being a global hub for blockchain innovation and home to the Crypto Valley in Zug, the Swiss National Bank (SNB) has no plans to issue a digital franc.

Carlos Lenz, Chief Economist at SNB, stated clearly at a recent Swiss Bankers Association event:

“There is no need for a digital franc. Our current payment system works well without it.”

He criticized blockchain-based solutions for inefficiency:

“Blockchain technology is extremely inefficient. Decentralized systems are not ideal.”

This skepticism doesn’t mean Switzerland is disengaged. On the contrary, it has been actively researching CBDCs since 2019, when parliament mandated a review of their feasibility. That same year, the government concluded that a digital franc posed too many risks.

Yet research continues. In 2020, the Bank for International Settlements (BIS) completed a pilot on using CBDCs among financial institutions. More recently, the SNB partnered with the French central bank on Project Jura, a cross-border wholesale CBDC trial focused on international settlements between banks.

Lenz draws parallels between early resistance to the euro and today’s CBDC debates:

“When the euro was introduced, people feared payments would suddenly change. But systems adapted.”

👉 Explore how countries are testing next-generation financial infrastructure through CBDC pilots.

Global Trends in Central Bank Digital Currencies

Spain and Switzerland represent two ends of a spectrum in the global CBDC race. Over 130 countries are now exploring some form of digital currency, according to the Atlantic Council’s CBDC Tracker.

China leads with its e-CNY pilot, already used by millions across major cities. The Bahamas launched the Sand Dollar nationwide. Nigeria’s eNaira struggles with adoption but remains active. Meanwhile, the U.S. Federal Reserve continues research on a potential “digital dollar” without committing to launch.

Key drivers include:

Frequently Asked Questions (FAQ)

Q: What is a central bank digital currency (CBDC)?
A: A CBDC is a digital form of a country’s official currency, issued and backed by the central bank. It functions similarly to physical cash but exists in electronic form.

Q: Will a Spanish CBDC replace cash?
A: Not immediately. The goal is to complement cash, not eliminate it. However, as cash usage declines, digital alternatives may become dominant.

Q: Is Spain creating its own digital currency outside the euro system?
A: No. Any Spanish digital currency would be part of the Eurosystem and aligned with ECB policies, likely serving as a digital version of the euro.

Q: How does a CBDC differ from cryptocurrency?
A: CBDCs are centralized, regulated, and issued by governments. Cryptocurrencies are typically decentralized and not backed by any state authority.

Q: Could a CBDC increase government surveillance?
A: This is a valid concern. While CBDCs can offer privacy protections similar to cash in small transactions, they may allow greater transaction monitoring than physical money.

Q: Is Switzerland completely against CBDCs?
A: No. While SNB sees no current need for a retail digital franc, it actively participates in wholesale CBDC experiments like Project Jura for interbank use.

The Road Ahead for Digital Money

The contrast between Spain’s proactive stance and Switzerland’s caution reflects deeper philosophical and technical debates about money’s future. As more nations test digital currencies, interoperability, privacy standards, and cybersecurity will become critical.

For Spain, a successful CBDC could modernize payments, strengthen policy tools, and reinforce public trust in money. For Switzerland, continued research ensures preparedness—even if full deployment remains distant.

👉 Stay ahead of the curve—learn how digital currencies are shaping the future of finance.

Core Keywords:

The global shift toward digital money is not a matter of if, but how and when. Countries that balance innovation with prudence will lead the next era of financial evolution.